Bond corporation is planning a bond issue to finance a new project. Bond plans t

Question

Bond corporation is planning a bond issue to finance a new project. Bond plans to issues 2000 bonds with a face value of $ 1000 each and a coupon rate of 6%. The tax is 40%. Projected EPS upon completion of the project is $5.64. What are the projected after tax earnings after completion of the project if there are 200,000 shares outstanding?
A. $ 1,104,000 B $ 1,128,000 C$ 1,138,000 D none of the above Bond corporation is planning a bond issue to finance a new project. Bond plans to issues 2000 bonds with a face value of $ 1000 each and a coupon rate of 6%. The tax is 40%. Projected EPS upon completion of the project is $5.64. What are the projected after tax earnings after completion of the project if there are 200,000 shares outstanding?
A. $ 1,104,000 B $ 1,128,000 C$ 1,138,000 D none of the above
A. $ 1,104,000 B $ 1,128,000 C$ 1,138,000 D none of the above

Explanation / Answer

Projected after tax earnings = EPS x No. of shares = $5.64 x 200,000 = $1,128,000

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